Whitewater co lost its entire inventory in the flash flood

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Reference no: EM13390050

Whitewater Co. lost its entire inventory in a flash flood that occurred on August 31, 20##. Over the past 4 years gross profit has averaged 32% of net sales. The following records for August were recovered:

Beginning Inventory

$38,600

 

Net Purchases

$341,900

 

Sales

$530,400

 

Sales returns and allownaces

$12,300

 

Sales discounts

$6,500

 

Requirements:

1. Estimate the August 31 inventory using the gross profit method.

2. Prepare the August income statement through gross profit for Whitewater Co.

Reference no: EM13390050

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